No Ratio Loan
No DTI calculation. Focus on the fundamentals.
A non-QM program that does not calculate a debt-to-income ratio, focusing instead on credit, assets, and property.
What is a No Ratio loan?
No Ratio loans skip the debt-to-income calculation entirely. Underwriting focuses on the borrower's credit profile, verified assets, and property value.
Designed for
Borrowers with strong assets and credit whose income documentation is difficult or unnecessary to verify.
Why choose it
It removes the DTI hurdle when income doesn't neatly fit standard documentation.
Common use cases
- ◆Business owners with complex tax returns
- ◆Investors with heavy paper losses
- ◆Retirees not documenting income
- ◆Wealthy borrowers with asset-heavy profiles
Built for borrowers who look like this.
Complex-income borrowers
Whose true earnings don't match returns.
Investors
With significant depreciation offsets.
Retirees
Living off portfolio distributions.
High-net-worth borrowers
Prefer asset- and credit-based underwriting.
The advantages.
No DTI calculation
Removes a common qualification hurdle.
Simplified documentation
Focus is on credit, assets, and collateral.
Faster underwriting
Streamlined income review.
Broad property eligibility
Primary, second home, and investment options often available.
Things to weigh.
Rate premium
Pricing generally exceeds conforming loans.
Down payment
Often larger than agency loans.
Reserves
Meaningful reserves typically required.
Credit dependence
Strong credit is central to approval.
What lenders generally look for.
Requirements vary based on lender guidelines and borrower qualifications. The below is educational — not a commitment or offer of credit.
- Income documentation
- Not calculated as a ratio
- Credit expectations
- Strong credit generally required
- Reserves
- Meaningful reserves expected
- Occupancy
- Primary, second home, and investment options
Answers to what borrowers ask most.
Is any income documentation required?
Programs vary. Some collect asset statements only.
How does this differ from DSCR?
DSCR uses property cash flow. No Ratio doesn't calculate any ratio.
Is credit important?
Yes, credit strength is central to no-ratio underwriting.
Can I use it for investment properties?
Often yes.
Is the pricing competitive?
Rates typically exceed conforming loans.
How large a loan can I get?
Program-dependent; jumbo sizes possible with strong asset support.
Do I need to be self-employed?
No. Any borrower profile fitting the guidelines can qualify.
Can I close in an LLC?
Often yes, particularly for investment properties.
How quickly can I close?
Streamlined income review often speeds the timeline.
Can I refinance later?
Yes, into another program when income supports it.
No Ratio Loan Guide
A complete guide to no-ratio mortgage financing: what it means to qualify without a debt-to-income calculation, what underwriters review instead, credit and loan-to-value expectations, reserve requirements, business-purpose versus consumer transactions, pricing, and how no-ratio compares with bank statement, asset-based, DSCR, and conventional loans.
Run the numbers.
Educate yourself.
Complementary programs worth exploring.
DSCR
Investor financing that qualifies based on the property's rental income rather than the borrower's personal income.
Explore DSCR loan requirementsAsset Qualifier
A streamlined program that qualifies borrowers using verified liquid assets, without requiring income documentation.
Explore Asset Qualifier loan requirementsBank Statement
A non-QM program that qualifies self-employed borrowers using deposits on personal or business bank statements rather than tax returns.
Explore Bank Statement loan requirementsPrivate Money
Short-term financing from private capital sources, ideal for time-sensitive or non-traditional deals.
Explore Private Money loan requirementsAsk about No Ratio.
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